Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

There was about $1 billion of uninsured deposits out of roughly $30 billion of total liabilities, and some fled. I don’t know exactly what proportion fled. Maybe at the end there was something like $700 million of uninsured deposits, and we certainly worried about that in thinking about whether the FDIC’s approach was consistent with least-cost resolution. I guess we came to be convinced that, in the absence of our lending, there would have had to be a fire sale of assets and that great losses would have been taken in selling assets on that time frame to cover withdrawals. On balance we accepted the idea that the FDIC was going to close it within a two- week time frame, and we’re reasonably satisfied that it was consistent with least-cost resolution.

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